Dogecoin [DOGE] extended its decline by 4.70% today which pushed its price to $0.274. The meme-toke topped out after climbing above $0.3 after failing to sustain the level. A bigger recovery does not appear to be in the cards as volatility in the market tumbled.
DOGE reversed its weekly gains and the Wednesday’s pullback, which drove Bitcoin and most major altcoins to face rejection at crucial levels, was even more damaging. Over the past seven days, DOGE was down by more than 9%. Buyers have failed to catch up with the price and the crypto-asset was now trading close to an important support zone.
Dogecoin [DOGE] Daily Price Chart:
DOGE’s recovery towards its May highs was cut short as sellers paved in. The trading volume in the market has been very low which have hindered its growth. The 50 DMA [Pink] and the 200 DMA [Yellow] were moving in parallel to each other and so far has managed to avoid a death cross.
Moreover, the downsloping 100 DMA [Blue] appeared to be heading for a bullish crossover with the 50 DMA which could give the much-needed upswing and this would potentially reignite buyers in the momentum.
The technicals did not look very promising. The dotted markers of Parabolic SAR, for instance, moved above the DOGE price candles depicting a bearish phase in the market. Further bearish signals flashed on the red closing bars of Awesome Oscillator [AO] that depicted an unpromising momentum. The Relative Strength Index [RSI] dipped below the 50-median line as short-sellers forayed into the market.
A market reversal could inject bullish sentiment but the charts fail to depict a similar outlook. The heightening sell pressure now threatened Dogecoin’s fall near $0.26. A failure to sustain this level could pull the price further down to $0.22. The resistance levels, on the other hand, were at $0.345, $0.423, and $0.56 respectively.